Branch GST

Bhavesh (Accounts) (153 Points)

03 January 2024  

Hello Friends, there is little bit of ambiguity in branch accounting of GST for eg.: xyz co. has HO in Mumbai and Branch at Ahmedabad, now management has decided to make a purchase booking in Branch (Ahmedabad), and purchase from Mumbai of which payments are made from Mumbai HO banks, so the entry for payment will be Bank A/c. Dr. to Branch Cr., now question arise of GST how it will be recorded so if bank has charges charged GST in that case what entry has to be passed.

For Simplifying query as under:

Mumbai – Making payment of Branch purchase and booking the payment entry in Branch.

Bank – Payment made Mumbai branch.

Branch – Purchases are made from Mumbai.

Want to know how entry will be pass for GST in case of charges debited by bank. Both HO and Branch has GST registration.